Suppose the economy is in a recession. Which of the following is a valid argument for using
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Question:
Suppose the economy is in a recession. Which of the following is a valid argument for using expansionary fiscal policy, instead of monetary policy?
Select one:
a. Fiscal policy is more effective than monetary policy in a deep recession
b. Fiscal policy is slower than monetary policy
c. Fiscal policymakers are subject to more political influence, so some of their spendings tends to be wasteful.
d. Government spending could lead to lower growth through the crowding-out effect
Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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